Not only can a Reverse Mortgage help seniors stay in their home, it can also help many of them purchase their retirement home. (Or in some cases a vacation home). Recent legislation has opened the doors for seniors to use an FHA insured HECM Reverse Mortgage to purchase a home in Oregon, Washington and other states.:
 

• No borrower income limits and no credit requirements mean you may qualify for a higher-priced home. Loan qualification is based on your age and the value of the home you want to buy.
• You can lower your down payment and keep more of your cash by choosing to use all or part of the loan proceeds toward your home purchase.
• Repayment is not due as long as you occupy the home.
• There are no monthly payments.
• Your loan funds do not affect Social Security or Medicare benefits. (If you receive Supplemental Security Income or Medicaid, these benefits may be affected.)
• You do not pay back the loan until you sell your home, no longer use it for your primary residence, or pass away. Then, you or your estate will repay the cash you received from the HECM Reverse Mortgage, plus interest and other finance charges, to the lender. This means that any remaining equity in your home can be passed on to your heirs through the sale of the property.
• You will never owe more than the value of the home at the time of repayment, even if the loan balance exceeds the value of your property. This means no debt will ever be passed along to your estate or your heirs.
• At loan application, you must verify that you have the required funds for a down payment. This money can come from your savings, investments, or the sale of your current home.
• At the loan closing, you will need to show that you have title insurance and that a title search has been performed.
• The amount of money you have access to under the HECM Reverse Mortgage loan depends on your age, your down payment and the appraised value of the home you wish to purchase.
• You must keep applicable taxes and hazard insurance current, as well as maintain your home in good repair. The loan may become due and payable if you fail to pay property taxes and insurance or if you do not maintain your property.
• You must attend reverse mortgage counseling that explains your Home Keeper for Home Purchase financing options. "

There are several types of Reverse Mortgages. The FHA’s HECM Reverse Mortgage is just one of them.

If you or anyone you know needs help with a Reverse Mortgage, feel free to contact me.